New Delhi: Delhi Government on Wednesday approved a project to construct 7,400 low-cost flats for allotment among slum dwellers and economically weaker section, in tune with its plan to make the national capital slum-free.

The project, which is estimated to cost Rs 356.79 crore, was approved at a meeting of the Delhi Urban Shelter Improvement Board (DUSIB) chaired by Chief Minister Sheila Dikshit.

The flats will be built at Pocket-II in Bhalaswa area of Jahangirpuri in North Delhi.

"The project will be implemented under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) and it will cost Rs 356.79 crore," said an official.

Earlier this year, government had taken an in-principle decision to construct 72,000 low-cost flats in next two years for allotment among slum dwellers and economically weaker section, in tune with its plan to make the national capital slum-free.

The meeting also approved a proposal to construct a community hall at Trilokpuri at an estimated cost of Rs 3.75 crore.

The meeting was attended by Urban Development Minister A K Walia, Chief Secretary P K Tripathi and senior officials of various concerned agencies and departments.

Addressing the meeting, Dikshit underlined the need for ensuring quality in construction of the flats.

The meeting also approved a budget of Rs 256 crore for the DUSIB's for the year 2012-13.

Officials said the budget will be sent to Delhi Government for approval.

The meeting decided to take a number of steps to shore up revenue generation of DUSIB which included disposal of residential and commercial plots, auctioning shopping complexes that are lying unutilised and bringing a special schemes for conversion of "licensed property" to free hold, officials said.